03/01/2014 02:02 PM
The Help to Buy scheme has been hailed as a huge success by prime minister David Cameron.
Mr Cameron stated that since its launch three months ago the mortgage guarantee initiative has received 6,000 applicants representing nearly £1 billion of new lending to people looking to get their first foot on the property ladder. Since its inception, around 750 homeowners have been able to complete their purchases and many were able to spend the festive period in their new home.
The success of the scheme has sparked movement in the banking sector with the likes of Lloyds Banking Group, HSBC, Virgin Money, Aldermore and RBS offering Help to Buy products to its customers. Barclays recently announced that it would be joining this market in the coming weeks.
Mr Cameron heaped praise on the Help to Buy scheme and said: "Too many people have found themselves frozen out of the market in recent years as a result of the size of the deposit required.
“That is why as part of our long-term economic plan we introduced the Help to Buy scheme, so hardworking people with sufficient earnings can get on, fulfil their aspirations and enjoy the security of owning their own home."
He went on to add that he hopes that this trend continues into 2014 and allow more first-time buyers get their foot on the property ladder. Help to Buy works by allowing people to secure a property with just five per cent of the house's value as a deposit. The rest of the money is made up through a government guarantee and a 95 per cent mortgage from a commercial lender.
Help to Buy was recently highlighted as one of the driving forces behind the recovery of the construction sector across the UK. Dr Noble Francis, economics director at the Construction Products Association, noted that the demand in the housing market allowed the industry see output grow 6.2 per cent during October, adding to the overall recovery noted across the past year.
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Mr Cameron stated that since its launch three months ago the mortgage guarantee initiative has received 6,000 applicants representing nearly £1 billion of new lending to people looking to get their first foot on the property ladder. Since its inception, around 750 homeowners have been able to complete their purchases and many were able to spend the festive period in their new home.
The success of the scheme has sparked movement in the banking sector with the likes of Lloyds Banking Group, HSBC, Virgin Money, Aldermore and RBS offering Help to Buy products to its customers. Barclays recently announced that it would be joining this market in the coming weeks.
Mr Cameron heaped praise on the Help to Buy scheme and said: "Too many people have found themselves frozen out of the market in recent years as a result of the size of the deposit required.
“That is why as part of our long-term economic plan we introduced the Help to Buy scheme, so hardworking people with sufficient earnings can get on, fulfil their aspirations and enjoy the security of owning their own home."
He went on to add that he hopes that this trend continues into 2014 and allow more first-time buyers get their foot on the property ladder. Help to Buy works by allowing people to secure a property with just five per cent of the house's value as a deposit. The rest of the money is made up through a government guarantee and a 95 per cent mortgage from a commercial lender.
Help to Buy was recently highlighted as one of the driving forces behind the recovery of the construction sector across the UK. Dr Noble Francis, economics director at the Construction Products Association, noted that the demand in the housing market allowed the industry see output grow 6.2 per cent during October, adding to the overall recovery noted across the past year.
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